[Photo provided by KT Corp.]

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South Korea’s leading mobile carrier KT Corp. posted a 6.4 percent year-over-year increase in operating profit from October to December last year, although falling 40 percent against the previous quarter due to sluggish real estate and credit card business from winter outbreak in Covid-19.

KT announced in a regulatory filing on Tuesday that its operating profit for the fourth quarter ended December last year totaled 166.8 billion won ($149.5 million), down 42.9 percent from the previous quarter but up 6.4 percent from a year ago.

Revenue came at 6.2 trillion won, up 3.4 percent on quarter and 0.2 percent on year. Net profit plunged 83 percent on quarter to 39.1 billion won, but improved from red numbers last year.

For the full 2020, it managed a modest 2.1 percent increase in operating profit to 1.18 trillion won. Sales declined 1.7 percent to 23.9 trillion won, but net income grew 5.6 percent to 703.4 billion won.

On Tuesday, KT shares rose 0.21 percent to close at 24,100 won.

The AI/DX business posted the highest on-year gain in revenue at 11.8 percent last year, with the internet data center (IDC) and cloud businesses recording a double-digit growth as businesses are accelerating their digital transformation.

The nation’s biggest IDC the company opened in central Seoul in November last year has achieved 70 percent reservation rate, and its cloud service is widening its customer base especially for public and financial institutions, KT said.

Sales at the internet protocol television (TV) business gained 7.7 percent from the previous year, and the number of subscribers kept increasing on a net basis as its service quality has been improved through aggressive partnerships with other companies.

The wireless business recorded a 1.3 percent growth in sales to 6.9 trillion won, thanks to the steady increase in the number of 5G subscribers despite the poor roaming service business amid the pandemic-induced travel restrictions.

The number of 5G service subscribers reached 3.62 million as of the end of last year, accounting for 25 percent of the total subscribers.

Its fixed-line business saw a 7.3 percent on-year decline in revenue last year, but sales from the high-speed internet maintained the similar level from the previous year.

Sales of BC Card, its credit card unit, declined 4.2 percent from a year ago due to the contracted consumption amid Covid-19. Its real estate development business KT Estate saw a 24.9 percent on-year decrease in revenue on weak hotel business and sluggish property sales.

The content business units recorded a 9.6 percent gain in sales thanks to the growing online advertisements and expanded number of subscribers to its music streaming service.

KT also said it will make a cash dividend payout of 1,350 won per common share, up 250 won from the previous year.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]